Ethiopia starts construction of 5250MW Nile river project
“On the basis of benefit from the project, Sudan and Egypt should cover 30 and 20 per cent of the cost, respectively,” Meles said. “However, due to absence of fairness in the system, Ethiopia is the only country bearing the costs”.
A government “Millennium Bond” with a 5% interest rate is ready to be sold to the public to help raise the necessary finance for the project. Construction is being handled by the Salini Corporation, the same company which is currently building the Gibe III hydropower plant and which built the Gibe I, Gibe II and Tana Belese hydropower plants.
Egyptian officials are concerned that the project could deplete their country’s water resources and damage its economy. Meles has argued that such fears are “unfounded, because this energy project will use water which will then be pumped back into the river and therefore “it will not affect the river flow downstream of the dam.”